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    2-Risk and Control

    Uploaded by

    Sheila Mae Lira
    A risk and control assessment examines operational risks and control effectiveness to provide assurance that business objectives are met and risk management is robust, helping organizations assess resource efficiency and goal alignment while generating information to improve controls and responsibility distribution.

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    © All Rights Reserved
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    2-Risk and Control

    Uploaded by

    Sheila Mae Lira
    10 views2 pages
    A risk and control assessment examines operational risks and control effectiveness to provide assurance that business objectives are met and risk management is robust, helping organizations assess resource efficiency and goal alignment while generating information to improve controls and responsibility distribution.

    Original Title

    2-RISK AND CONTROL

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    A risk and control assessment examines operational risks and control effectiveness to provide assurance that business objectives are met and risk management is robust, helping organizations assess resource efficiency and goal alignment while generating information to improve controls and responsibility distribution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    2-Risk and Control

    Uploaded by

    Sheila Mae Lira
    A risk and control assessment examines operational risks and control effectiveness to provide assurance that business objectives are met and risk management is robust, helping organizations assess resource efficiency and goal alignment while generating information to improve controls and responsibility distribution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    A risk and control assessment is the process by which organisations assess

    and examine operational risks and the effectiveness of controls used to


    circumnavigate them. It’s one of the easiest and most effective tools in the risk
    management arsenal, and the objective is simple: to provide firms with
    reasonable assurance that all business objectives are going to be met, and
    existing risk management protocols are sustainable and robust.

    Risk control assessments are included in many regulatory frameworks and


    are designed to ensure the reliability and integrity of information, confirm
    compliance across internal policies, external regulatory responsibilities and
    safeguard assets. Similarly, the RCSA process also helps institutions to
    assess how efficiently and economically they’ve been using resources and
    how closely teams are aligning with established objectives and goals.

    Bearing that in mind, the benefits of RCS assessments are relatively self-
    evident. Because the exercise generates crucial information on operational
    risks and internal controls, internal auditors and managers can use RCSA
    findings to judge the quality of control.

    In turn, not only do RCSAs encourage management and staff to assume and
    share responsibility for internal controls, but they also give organisations the
    opportunity to focus efforts on both informal and formal controls.

    Likewise, these assessments double as an effective bottom-up feedback


    mechanism to help organisations be more proactive, reduce audit exposures
    and improve the image and visibility of internal audits. Although risk and
    control self assessment can be time consuming, they also identify, enhance
    and more evenly distribute responsibility across an organisation to heighten
    awareness and accountability.
    Banks and other financial institutions enjoy further benefits by utilising RCSA
    techniques as part of an integrated risk management strategy. This is
    because a facilitated RCSA can vastly improve the control environment of FIs
    by increasing awareness regarding organisational objectives and motivate
    personnel to more carefully design and implement operating control
    processes

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